diff --git a/pyproject.toml b/pyproject.toml
index e18f8805a..e20aa1143 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "uipath"
-version = "2.5.6"
+version = "2.5.7"
 description = "Python SDK and CLI for UiPath Platform, enabling programmatic interaction with automation services, process management, and deployment tools."
 readme = { file = "README.md", content-type = "text/markdown" }
 requires-python = ">=3.11"
diff --git a/src/uipath/tracing/_otel_exporters.py b/src/uipath/tracing/_otel_exporters.py
index 34317f878..83fd6d27b 100644
--- a/src/uipath/tracing/_otel_exporters.py
+++ b/src/uipath/tracing/_otel_exporters.py
@@ -357,6 +357,13 @@ def _process_span_attributes(self, span_data: Dict[str, Any]) -> None:
         elif span_type == "toolCall":
             self._map_tool_call_attributes(attributes)
 
+        # Parse JSON-encoded strings that should be objects (avoids double-encoding)
+        # OTEL only accepts primitives, so agents serialize dicts to JSON strings.
+        # Detect and parse any string that looks like JSON object/array.
+        for key, value in attributes.items():
+            if isinstance(value, str) and value and value[0] in "{[":
+                attributes[key] = _safe_parse_json(value)
+
         # If attributes were a string (legacy path), serialize back
         # If dict (optimized path), leave as dict - caller will serialize once at the end
         if isinstance(attributes_val, str):
diff --git a/tests/tracing/test_otel_exporters.py b/tests/tracing/test_otel_exporters.py
index 07418c69f..1febaad15 100644
--- a/tests/tracing/test_otel_exporters.py
+++ b/tests/tracing/test_otel_exporters.py
@@ -556,6 +556,60 @@ def test_unknown_span_type_preserved(self):
         print("✓ UNKNOWN span preserved and processed correctly")
         print(f"✓ Final attributes keys: {list(attributes.keys())}")
 
+    def test_json_strings_parsed_to_objects(self):
+        """Test that JSON-encoded strings starting with { or [ are parsed to objects.
+
+        OTEL only accepts primitives, so agents serialize dicts/lists to JSON strings.
+        The exporter should parse these back to objects before final serialization.
+        """
+        span_data = {
+            "Id": "test-span-id",
+            "TraceId": "test-trace-id",
+            "ParentId": None,
+            "Name": "Test span",
+            "StartTime": "2025-01-01T00:00:00Z",
+            "EndTime": "2025-01-01T00:00:01Z",
+            "Attributes": {
+                "type": "agentRun",
+                "inputSchema": '{"type": "object", "properties": {}}',
+                "outputSchema": '{"type": "object", "properties": {"content": {"type": "string"}}}',
+                "settings": '{"maxTokens": 16384, "temperature": 0.0}',
+                "toolCalls": '[{"id": "call_123", "name": "test_tool"}]',
+                "regularString": "not json",
+                "emptyString": "",
+            },
+            "Status": 1,
+        }
+
+        self.exporter._process_span_attributes(span_data)
+
+        attributes = span_data["Attributes"]
+        assert isinstance(attributes, dict)
+
+        # JSON strings should be parsed to objects
+        input_schema = attributes["inputSchema"]
+        assert isinstance(input_schema, dict)
+        self.assertEqual(input_schema["type"], "object")
+
+        output_schema = attributes["outputSchema"]
+        assert isinstance(output_schema, dict)
+        self.assertIn("content", output_schema["properties"])
+
+        settings = attributes["settings"]
+        assert isinstance(settings, dict)
+        self.assertEqual(settings["maxTokens"], 16384)
+
+        tool_calls = attributes["toolCalls"]
+        assert isinstance(tool_calls, list)
+        self.assertEqual(tool_calls[0]["name"], "test_tool")
+
+        # Non-JSON strings should remain as strings
+        self.assertIsInstance(attributes["regularString"], str)
+        self.assertEqual(attributes["regularString"], "not json")
+
+        self.assertIsInstance(attributes["emptyString"], str)
+        self.assertEqual(attributes["emptyString"], "")
+
 
 class TestSpanFiltering:
     """Tests for filtering spans marked with telemetry.filter=drop."""
diff --git a/uv.lock b/uv.lock
index 080bf52bc..8761b7e1c 100644
--- a/uv.lock
+++ b/uv.lock
@@ -2486,7 +2486,7 @@ wheels = [
 
 [[package]]
 name = "uipath"
-version = "2.5.6"
+version = "2.5.7"
 source = { editable = "." }
 dependencies = [
     { name = "applicationinsights" },